In a teary all-hands meeting on Monday morning, CEO Boris Sofman told his staff they would be terminated on Wednesday and that close to 200 employees would be paid a week of severance, according to people familiar with the matter. Sofman had told employees a few days earlier that the company was scrambling to find more money after a new round of financing fell through at the last minute, imperiling the company’s future.

Anki neared $100 million in revenue in 2017 and was expected to surpass that amount in 2018. The company had already received $200 million in funding but needed additional backing to stay operational. After a large financial deal fell through, the company says it was left "without significant funding to support a hardware and software business and bridge to our long-term product roadmap."

Here's their statement to Recode:

“Despite our past successes, we pursued every financial avenue to fund our future product development and expand on our platforms,” a company spokesperson said. “A significant financial deal at a late stage fell through with a strategic investor and we were not able to reach an agreement. We’re doing our best to take care of every single employee and their families, and our management team continues to explore all options available.”